DA Technology Secures 9.1 Billion KRW Battery Equipment Order... "Signal of Performance Turnaround"

[Asia Economy Reporter Jang Hyowon] DA Technology announced on the 28th that it has signed a 'secondary battery assembly process manufacturing equipment supply contract' with a domestic battery company. This order is for the supply of manufacturing equipment for cylindrical batteries used in electric vehicles, with a contract value of 9.062 billion KRW.

Starting with securing this approximately 10 billion KRW order, DA Technology plans to accelerate the expansion of domestic battery equipment orders. This is because aggressive investments in battery production facilities are being made not only domestically but also overseas, centered on the three major Korean battery companies LG, Samsung, and SK.

DA Technology has maintained a stable collaborative relationship as a primary vendor with LG Energy Solution for over 15 years. Based on this, the company intends to speed up the supply of battery equipment to domestic and international battery companies as well as automobile manufacturers.

In October, DA Technology signed a secondary battery manufacturing equipment supply contract with global automaker Rivian in the United States, and is currently discussing collaboration on battery manufacturing processes in line with the trend of battery internalization by automakers in the US and Europe.

A company official stated, “The initial supply for Rivian is progressing smoothly, and the coordination of opinions for additional order expansion early next year is in the final stages,” adding, “In 2022, we will create a full-scale performance turnaround based on meaningful growth in domestic and international battery equipment business results.”

Additionally, DA Technology expects to benefit from the stock market listing of its major client LG Energy Solution and large-scale facility investments based on the public offering funds. LG Energy Solution, scheduled for institutional demand forecasting on January 11-12, is estimated to have a corporate value of up to 70 trillion KRW, drawing attention as the 'largest IPO since the founding of Korea.'

It is known that LG Energy Solution plans to use the funds raised through this IPO for facility funds to expand production capacity at its domestic Ochang plant, acquisition of securities of other corporations to expand production capacity at overseas production bases in North America, Europe, and China, and operating funds for research and development of lithium-ion batteries and next-generation batteries, as well as for product quality improvement and process enhancement.

A company official said, “Following the battery equipment investment trend of LG Energy Solution, a major client of DA Technology, we will strengthen the competitiveness of DA Technology’s battery business and create synergy.”

This content was produced with the assistance of AI translation services.